Asymmetric nexus between Bitcoin, gold resources and stock market returns: Novel findings from quantile estimates. (March 2023)

• Record Type: Journal Article
• Authors: Jia, Zhenzhen; Tiwari, Sunil; Zhou, Jianhua; Farooq, Muhammad Umar; Fareed, Zeeshan
• Is Part Of: Resources policy. Volume 81(2023)
• Publication Date: 2023-03
• Subjects: Bitcoin -- Gold price -- Stock market returns -- Quantile and quantile -- Chinese economic structure; G11 -- G14 -- G15; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2023.103405
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: In the context of the debate on Bitcoin, gold resources, and stock markets, the current study examines the nexus between the gold market, Bitcoin, and stock market returns. We explore the effects of gold resources, the stock market, and Bitcoin within the Chinese context using the data in Chinese currency and under the lens of the Chinese economic structure. We collected daily data from 3 November 2014 to 31 October 2019 on all our key variables of interest. The study employs the quantile-on-quantile and quantile regression methods for comprehensive empirical analysis. Key findings suggest significant effects of Chinese stock market returns on Bitcoin and gold price effects on Bitcoin exist. In addition, gold prices negatively affect stock market returns and vice versa. The study offers novel implications regarding future cryptocurrency policies, stock markets, and resources in a Chinese context. Highlights: The study investigates the nexus between Bitcoin, gold price and stock market. Chinese market data was obtained as Daily frequency from 2014 to 2019. Quantile on Quantile and Quantile regression methods were employed. There exist significant and positive effects from gold and stock markets towards Bitcoin prices. Novel policies are discussed apropos Commodities in a Chinese context.